Super Retail Group (SUL)

Super Retail Group
, owner of brands such as Super Cheap Auto, and Goldcross Cycles, has outperformed its competitors on the ASX so far this year. The secret to its success in an otherwise depressed retail environment is its stores’ bargain basement image, making them less sensitive to consumer discretionary spending, say analysts. In a presentation in early May, given just after the stock hit a record high of $7.49, managing director Peter Birtles identified issues facing the company, including increased competition from online channels, the underperformance of the Goldcross Cycles’ chain and the fluctuating cost of products sourced in China. The company has clear plans for growth and is looking for opportunities to “organically grow and/or acquire businesses to expand the group’s operations into adjacent retail categories". The share price has increased 12.8 per cent so far this year, but the majority of brokers believe it has further to run, with an average 12-month share price target of $7.58.